Intel Corporation (NASDAQ:INTC) shares rose 2% in premarket trading Monday following a CNBC report that the chipmaker was nearing a deal with the U.S. Commerce Department for a nearly $8 billion grant under the Chips Act,

The U.S. government plans to reduce Intel Corp's preliminary $8.5 billion federal chips grant to less than $8 billion, the New York Times reported on Sunday citing unnamed sources. The change took into account a $3 billion contract Intel had been offered to make chips for the Pentagon,

The Biden administration is expected to trim the original $8.5 billion in grant funding to Intel from the CHIPS and Science Act, according to multiple reports.